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Where do I report my PPP Loan forgiveness on a 1120 - Where do I report my PPP Loan forgiveness on a 1120, 1120S, and 1065 using SureFire?

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1120S page 3 , Sch K, line 16b Other Tax-Exempt Income worksheet. Following this method, the tax-exempt income will be included in the Basis calculation on Sch K-1, and the 1120S Sch M-1.Deductible PPP-related expenses can be included along with other business expenses. No special adjustments or reporting is required. Unless further guidance is issued, no additional changes are expected at this time

 

For accounting purposes, PPP loans should be treated the same as other business debt. For tax purposes, once forgiven, it would be reported as tax-exempt income instead of as cancellation of debt income.

 

1120S page 3 , Sch K, line 16b Other Tax-Exempt Income

1065: 1065 page 4 line 18b

1120: M-1 line 7 as non taxable

Tags: federal,form